Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Costco Wholesale Corp., short-term (operating) activity ratios

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Turnover Ratios
Inventory turnover	12.77	11.13	12.01	11.84	11.66	11.16
Receivables turnover	104.03	99.39	106.52	105.30	97.30	82.94
Payables turnover	12.16	11.17	10.49	10.23	11.38	10.96
Working capital turnover	103.53	319.10	3,000.81	49.82	602.22	381.36
Average No. Days
Average inventory processing period	29	33	30	31	31	33
Add: Average receivable collection period	4	4	3	3	4	4
Operating cycle	33	37	33	34	35	37
Less: Average payables payment period	30	33	35	36	32	33
Cash conversion cycle	3	4	-2	-2	3	4

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

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Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Costco Wholesale Corp. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Costco Wholesale Corp. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Costco Wholesale Corp. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Costco Wholesale Corp. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

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Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Costco Wholesale Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Costco Wholesale Corp. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Costco Wholesale Corp. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Costco Wholesale Corp., inventory turnover calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data (US$ in millions)
Merchandise costs	212,586)	199,382)	170,684)	144,939)	132,886)	123,152)
Merchandise inventories	16,651)	17,907)	14,215)	12,242)	11,395)	11,040)
Short-term Activity Ratio
Inventory turnover¹	12.77	11.13	12.01	11.84	11.66	11.16
Benchmarks
Inventory Turnover, Competitors²
Target Corp.	6.09	5.39	6.21	6.10	5.61	—
Walmart Inc.	8.20	7.59	9.35	8.88	8.70	—
Inventory Turnover, Sector
Consumer Staples Distribution & Retail	8.75	7.96	9.41	9.05	8.77	—
Inventory Turnover, Industry
Consumer Staples	8.21	7.60	8.82	8.40	8.24	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Inventory turnover = Merchandise costs ÷ Merchandise inventories
= 212,586 ÷ 16,651 = 12.77

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Costco Wholesale Corp. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Costco Wholesale Corp., receivables turnover calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data (US$ in millions)
Net sales	237,710)	222,730)	192,052)	163,220)	149,351)	138,434)
Receivables, net	2,285)	2,241)	1,803)	1,550)	1,535)	1,669)
Short-term Activity Ratio
Receivables turnover¹	104.03	99.39	106.52	105.30	97.30	82.94
Benchmarks
Receivables Turnover, Competitors²
Target Corp.	92.03	125.28	146.43	154.88	117.77	—
Walmart Inc.	76.37	68.57	85.21	82.74	81.22	—
Receivables Turnover, Sector
Consumer Staples Distribution & Retail	83.53	78.82	93.82	91.25	86.88	—
Receivables Turnover, Industry
Consumer Staples	35.38	34.89	38.54	37.27	34.73	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= 237,710 ÷ 2,285 = 104.03

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Costco Wholesale Corp. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Costco Wholesale Corp., payables turnover calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data (US$ in millions)
Merchandise costs	212,586)	199,382)	170,684)	144,939)	132,886)	123,152)
Accounts payable	17,483)	17,848)	16,278)	14,172)	11,679)	11,237)
Short-term Activity Ratio
Payables turnover¹	12.16	11.17	10.49	10.23	11.38	10.96
Benchmarks
Payables Turnover, Competitors²
Target Corp.	6.10	4.84	5.15	5.53	5.46	—
Walmart Inc.	8.63	7.76	8.55	8.40	8.19	—
Payables Turnover, Sector
Consumer Staples Distribution & Retail	8.95	7.94	8.40	8.36	8.34	—
Payables Turnover, Industry
Consumer Staples	7.10	6.51	6.79	6.85	6.89	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Payables turnover = Merchandise costs ÷ Accounts payable
= 212,586 ÷ 17,483 = 12.16

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Costco Wholesale Corp. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Costco Wholesale Corp., working capital turnover calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data (US$ in millions)
Current assets	35,879)	32,696)	29,505)	28,120)	23,485)	20,289)
Less: Current liabilities	33,583)	31,998)	29,441)	24,844)	23,237)	19,926)
Working capital	2,296)	698)	64)	3,276)	248)	363)

Net sales	237,710)	222,730)	192,052)	163,220)	149,351)	138,434)
Short-term Activity Ratio
Working capital turnover¹	103.53	319.10	3,000.81	49.82	602.22	381.36
Benchmarks
Working Capital Turnover, Competitors²
Target Corp.	—	—	146.43	—	—	—
Walmart Inc.	—	—	—	—	—	—
Working Capital Turnover, Sector
Consumer Staples Distribution & Retail	—	—	—	—	—	—
Working Capital Turnover, Industry
Consumer Staples	—	—	—	—	—	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 237,710 ÷ 2,296 = 103.53

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Costco Wholesale Corp. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Costco Wholesale Corp., average inventory processing period calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data
Inventory turnover	12.77	11.13	12.01	11.84	11.66	11.16
Short-term Activity Ratio (no. days)
Average inventory processing period¹	29	33	30	31	31	33
Benchmarks (no. days)
Average Inventory Processing Period, Competitors²
Target Corp.	60	68	59	60	65	—
Walmart Inc.	45	48	39	41	42	—
Average Inventory Processing Period, Sector
Consumer Staples Distribution & Retail	42	46	39	40	42	—
Average Inventory Processing Period, Industry
Consumer Staples	44	48	41	43	44	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 12.77 = 29

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Costco Wholesale Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Costco Wholesale Corp., average receivable collection period calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data
Receivables turnover	104.03	99.39	106.52	105.30	97.30	82.94
Short-term Activity Ratio (no. days)
Average receivable collection period¹	4	4	3	3	4	4
Benchmarks (no. days)
Average Receivable Collection Period, Competitors²
Target Corp.	4	3	2	2	3	—
Walmart Inc.	5	5	4	4	4	—
Average Receivable Collection Period, Sector
Consumer Staples Distribution & Retail	4	5	4	4	4	—
Average Receivable Collection Period, Industry
Consumer Staples	10	10	9	10	11	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 104.03 = 4

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.

Costco Wholesale Corp., operating cycle calculation, comparison to benchmarks

No. days

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data
Average inventory processing period	29	33	30	31	31	33
Average receivable collection period	4	4	3	3	4	4
Short-term Activity Ratio
Operating cycle¹	33	37	33	34	35	37
Benchmarks
Operating Cycle, Competitors²
Target Corp.	64	71	61	62	68	—
Walmart Inc.	50	53	43	45	46	—
Operating Cycle, Sector
Consumer Staples Distribution & Retail	46	51	43	44	46	—
Operating Cycle, Industry
Consumer Staples	54	58	50	53	55	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 29 + 4 = 33

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.

Costco Wholesale Corp., average payables payment period calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data
Payables turnover	12.16	11.17	10.49	10.23	11.38	10.96
Short-term Activity Ratio (no. days)
Average payables payment period¹	30	33	35	36	32	33
Benchmarks (no. days)
Average Payables Payment Period, Competitors²
Target Corp.	60	75	71	66	67	—
Walmart Inc.	42	47	43	43	45	—
Average Payables Payment Period, Sector
Consumer Staples Distribution & Retail	41	46	43	44	44	—
Average Payables Payment Period, Industry
Consumer Staples	51	56	54	53	53	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.16 = 30

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Costco Wholesale Corp. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.

Costco Wholesale Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Selected Financial Data
Average inventory processing period	29	33	30	31	31	33
Average receivable collection period	4	4	3	3	4	4
Average payables payment period	30	33	35	36	32	33
Short-term Activity Ratio
Cash conversion cycle¹	3	4	-2	-2	3	4
Benchmarks
Cash Conversion Cycle, Competitors²
Target Corp.	4	-4	-10	-4	1	—
Walmart Inc.	8	6	0	2	1	—
Cash Conversion Cycle, Sector
Consumer Staples Distribution & Retail	5	5	0	0	2	—
Cash Conversion Cycle, Industry
Consumer Staples	3	2	-4	0	2	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 29 + 4 – 30 = 3

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Costco Wholesale Corp. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Costco Wholesale Corp. (NASDAQ:COST)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle